Raser Reports Steady Progress for Geothermal Projects

Raser Technologies Inc. (RZ) provided an update on its geothermal activities and its PHEV project. The company is gradually transitioning from a developmental stage company towards a geothermal power producer.

Raser is progressing rapidly on the Lightning Dock No. 1 geothermal project. Recently it bagged final approval from the New Mexico Oil Conservation Division (OCD) for injection of geothermal fluids. The company is also in the process of negotiating a revision to its power purchase agreement (PPA) with the Salt River Project Agricultural Improvement and Power District. The revision is expected to include an increase in the expected output from the Lightning Dock project as well as an increase in the price of energy under the PPA.

Raser is now in the final stages of testing the fifth production well that is needed for the completion of its first geothermal plant Thermo No. 1 as part of its plan to bring the plant to full capacity by the end of fiscal 2009. As of now, only the Thermo No. 1 plant (Hatch plant in Utah) with an annualized capacity of 10MW has been generating revenues since April by selling electricity to the city of Anaheim. The company plans to add 40MW annually to its capacity over the three year period 2010–2012 to bring its total geothermal power generation annualized capacity to 130MW.

Raser, however, is facing financial constraints for its capital projects. The company’s hopes now rest on governmental funding in its quest to become a commercially viable geothermal power producer. Also, Raser has a power purchase agreement with the Southern California Public Power Authority (SCPPA) that would cover the company’s next 110MW capacity expansion. Raser is also in the process of amending its agreements with Merrill Lynch, the tax-equity partner in the Thermo No. 1 plant, and Prudential, the debt holder to avail the benefit of the 30% federal grant for renewable energy projects under the American Recovery and Reinvestment Act of 2009. The company is also making progress at its electric powertrain technology following successful demonstrations of its proprietary H3 Hummer E-REV.

Provo, Utah-based Raser, founded in 2002, functions as a geothermal power development and technology licensing company in the United States. The company operates in two segments – Power Systems, and Transportation and Industrial Technology. The Power Systems segment supplies and develops geothermal electric power generating plants and bottom-cycling operations. The Transportation and Industrial Technology segment focuses on commercializing its Symetron technology to improve the efficiency of electric motors and related components.

Raser currently has seven geothermal power projects under development three each in Nevada, two in Utah, one each in Oregon and New Mexico, respectively. We maintain our market Neutral recommendation on the shares.

Comments

[jerrydd:]

What Raser, other Geothermal generator builders, needs to mine is thermal powerplants by putting their engines in front of the PP's condensers. Almost ever thermal powerplant of coal, NG or nuke can increase eff, output and at the same time, cut cooling costs, water use 50% in the condensers as some of the heat was turned into power, no longer needs as much cooling.

The market of this is huge with payback in 3 yrs both in utilities and industry, converting waste heat to usable power.

Air conditioning companies are set up for especially the home size solar, CHP market, because A/C's are just low temp heat engines in reverse.

Between solar CSP, make electric from biomass or heating fuels first to pay for the fuel, CHP are large markets of 50% of US homes, buildings. and they can be paid for by electric bill savings in 3-5 yrs..

Oct 09 11:06 AM

[mws:]

Wind? Solar? Geothermal? Natural gas? Nuclear? Or how about technology newer and even more revolutionary (and, hence, unknown as of this date/time)? Do we really expect the government and the masses to accept, agree upon, and implement any of these options in the near future? Wishful thinking, yes (IMHO). Reality? Stay tuned...

Oct 09 04:07 PM

[Steven Ward:]

On the geo thermal issue what is being ignored is the specter of earthquakes on the re-injection of water or other liquids.
This sounds like goofball concern but the reality is that Bootlerock in California and a geo thermal site in the French Alps suffer from earthquakes. The French operation had to be shut down.

In California, they are use to earthquakes, no big deal there. But what of the concerns in the rest of the country where earthquakes are rare to non-existent.
If the locations are remote enough there should be no problem.
The thing about earthquakes: even the anti- green people will be in the streets protesting.
Yipe!!!

Oct 10 12:43 PM

[tc1:]

In my wide reading on the geothermal sector, i've read, concerning the EARTHQUAKE issue, that experts say 1) "by definition one finds geothermal potential in earthquake-prone areas"; and 2) it is with the Enhanced Geothermal Systems (EGS) method of extracting energy that one might trigger some additional seismic activity.

It is my understanding that Raser Tech (RZ) doesn't use EGS and has, furthermore, found a way to extract energy at lower steam temperatures and so their methods are less "invasive."

Oct 10 01:01 PM

[mike57:]

I think it is a shame this company was turned down for goverment assistance with all it has going for future energy in electricity and the savings of fuel which it has prooven with tecnologies!

Oct 10 06:58 PM

[sec2709:]

Why did the gov not give the assistance?


On Oct 10 06:58 PM mike57 wrote:

> I think it is a shame this company was turned down for goverment
> assistance with all it has going for future energy in electricity
> and the savings of fuel which it has prooven with tecnologies!

Oct 11 09:20 AM